Some banks that have substantial stakes in insurance companies have commenced moves to get the approval of the Central Bank of Nigeria to hold onto their group holding licences.

Last year, the CBN suspended the universal banking regime and ordered Deposit Money Banks to divest from all non-banking operations.

While some of the banks, which fully owned or had substantial stakes in insurance firms, immediately commenced the sale of their insurance subsidiaries, investigations revealed that those with group holding licences were retaining interest in the firms.

It was learnt that some of the banks had secured approval to retain their holdings in the insurance companies, while others requested extra time to decide whether to divest or adopt the group holding structure for their insurance subsidiaries.

The insurance companies wholly or partially owned by banks are UBA Metropolitan Life Insurance, FBN Life Insurance, UnityKapital Insurance Plc, Intercontinental Wapic Insurance Plc, Intercontinental Life Insurance, Zenith Life Insurance, Zenith General Insurance and Union Assurance Plc.

However, since United Bank of Africa Plc has a group holding licence, it said it would not divest from UBA Metropolitan Life Insurance, but would retain it under the group.

Similarly, the parent company of FBN Life Insurance, a subsidiary of First Bank of Nigeria Plc, intends to retain it under the group structure.

Union Bank of Nigeria Plc, which has a group holding licence, has applied to the CBN for extension to finalise its plans on whether to go ahead and retain its stake in Union Assurance or sell it off.

After Access Bank Plc took over the former Intercontinental Bank Plc, it applied for a no-objection to its plan to retain Intercontinental Wapic Insurance and Intercontinental Life Insurance.

Zenith Bank Plc, which owns Zenith Life Insurance and Zenith General Insurance, has not come out with what to do with the two firms. However, it has applied to the CBN for no-objection, pending when the final plan will be made.

Unity Bank has also not disclosed its decision on whether to divest or retain its stake in its subsidiary, UnityKapital Insurance.

However, Guaranty Trust Bank Plc has successfully divested from Guaranty Trust Assurance Plc by selling it to a consortium of five foreign investors under the name, Mansard Insurance Plc.

Other bank owned insurance companies already sold are ADIC Insurance Limited; Oceanic Insurance Life; Oceanic Insurance General; Law Union and Rock Insurance Plc; Crystalife Assurance Plc and Great Nigeria Insurance Plc.

Source: Punch/Nike Popoola